Monday, February 20, 2012

Professor Thomas Saaty and Me.

The ISAHP will be organized in Kuala Lumpur, 2013, 23-26 June 2013.

More info: http://www.isahp.org

However, we are in the process of transferring the portal to Malaysia.
Watch this space.

Pictures of our participation here

Friday, November 25, 2011

AHP application in SixSigma


An interesting SixSigma application using AHP can be surfed: Here

Sunday, November 20, 2011

Appraisal, Training Need Analysis (TNA) and Bonus Calculations

Appraisal, Training Need Analysis (TNA) and Bonus Calculations for construction and software industries
Benefits using AHP is that AHP creates ratio scales. On this basis, we can deduce the relative contribution to the company success. Each contribution can then be translated to the ratio of the bonus declared to the company’s employees.
1.       Create a hierarchy for appraisal using competency based model, ASK:
a.       Attitude
b.      Skills
c.       Knowledge
Attitude is defined as the way a person views something or tends to behave towards it, often in an evaluative way. As an example, punctuality, clientele empathy (Identification with and understanding of customer's situation, feelings, and motives), teamwork, sharing of knowledge, PR, etc.
Skills (special ability in a task, sport, etc., especially ability acquired by training) refer to hard skills directly involved to the success of implementing the day-to-day operations required by the job assigned to or demanded of him. Depending on the nature of work, the skill criteria varies.
For a Software Engineer knowing C++ may be a direct requirement, while Design skill using AUTOCAD is requisite for a construction engineer.

Knowledge is best explained as:
1. The state or fact of knowing.
2. Familiarity, awareness, or understanding gained through experience or study.
3. The sum or range of what has been perceived, discovered, or learned.
4. Learning; erudition: teachers of great knowledge.
5. Specific information about something.
In this example, knowledge is those that are not direct skills but awareness that may be used indirectly to accomplish certain job specifically assign to him. For a design engineer, the knowledge of safety hazards can be construed as an important knowledge.

2.       Add sub-criteria each of the top-level criteria
3.       Do pair wise comparison (PWC) between ASK and also the criteria
4.       Create Scales and assign the right weights using PWC methods.
5.       Rate the candidates using the assigned scales. If there is more than 8 candidates then used External Sources (Excel or Access) to enter the list of candidates. This method is faster and less cumbersome. Refer to special section in the manual to do this.
6.       If you are doing the bonus calculations, export to reports by using feature Reports. You will get a table of results in the word documentation format which can then be exported to Excel. These scores represent individual contributions that are ratio scales and therefore you can actually add these scores and then normalized to 1 or 100%.

Training Need Analysis
Use Weighted Gap function in 1Decision Software to analyze the training needs.

Bonus Calculations
Create a model for the appraisal of the whole employees in the company. Normal approach is that the management award into at least two categories depending on how the organization is organized and interact within the organization: 
·         Individual based and/or,
·         Project-based, and/or
·         Group based. Each group can be divided into sub-groups. For example, a division can be further sub-divided into smaller departments and sections.
Allocation for each category can be justified using the only made in Malaysia software using AHP, 1Decision. To download, the software please go to the company’s website, http: //www.1decision.my.

For individual contribution calculation, appraisal on individual yearly performance can be used as a basis.

Project-based performance analysis can be used to appraise the team members in context of delivering major projects which is largely time based. Criteria such as project delivery schedule, quality, project management, customer’s satisfaction, etc should be taken into account.

Group based performance calculation will use different set of criteria, namely those that are involved in how well each department performs with regards to the functionality of the division  with respect to managing the division overall function and its relationship with other divisions. For each division appraisal, the appraisers shall be the top-level management and shall not comprise the head of division in question. Criteria shall include function delivery to the Top Management, Quality of service to other divisions, Divisional KPIs, etc.

The total bonus for each individual shall be based on the summation of each. For more details on finally how to on how to finally come to the dollar and cents, please contact us at admin@bsuredecisions.com.

Thursday, November 10, 2011

Strategic decisions are complex – lets not make the job tougher!

Jo Whitehead of Ashridge Strategic Management Centre, writing for the Executive Education section of the Financial Times struck a cord with me. His call was for Business Schools and strategy text book writers to get back to the basics. More and more text books are offering complex strategy models that do nothing to help with the real challenge of strategy: the need to make and implement hard choices in an uncertain environment, with limited information.

Jo talks about students and professors wanting to talk about the latest new and sexy ideas and leave the basics behind. Furthermore, they do not have the time or inclination to put these concepts into practice other than applying them to a few after-the-fact case studies rather than in the crucible of real life, messy situations.

It leaves us with graduates (and executives) talking about these flashy ideas, but when they are required to develop a strategy, they go back to over-simplistic approaches like a SWOT analysis. Jo calls for a smaller number of foundation-type models upon which to build a rigorous set of strategy skills.

After having been in the field of crafting strategy for about 25 years, I have seen many of theses trends come and go – and admittedly have often got caught up in the excitement of some of them myself. I am not saying that they are not without value. For instance, working with a team while at Deloitte, we used the concept of “core competencies” to help convert a company manufacturing arms and ammunition into one that manufactured other peace-time products (a classic swords to ploughshare project). However, core competency thinking cannot be applied universally in all strategies and frankly it took the immense experience and brain-power of our consulting team (Dr, Adriaan Davidse and Karola McArthur) to make it practical.

All good strategy results in one, or a series, of critical decisions – always taken in complex environments with uncertain futures. Strategy tools that help us visualise, understand and manage this complexity add insight. Strategic concepts that make it more obscure or unnecessarily add another level of complexity are seldom useful. As we constantly remind ourselves at Genesis Management Consulting, strategy is ultimately “what are we going to sell to who, and with what basis of competitive advantage”. And if you cannot answer that question at the end of your strategy development process, you had better follow Jo’s advice and go back to the basics!

For further information about how to combat the complexity of strategic decisions, contact Simon at sgifford@genesis-esp.com

Thursday, March 03, 2011

Inviting readers to share their decision making problem

I would like to invite readers to give us a complex decision making or strategic decision problem that we can share solving it together.
I would also like to thank brother Ray from Jabatan Kerja Raya for his interest in this area of science.